Archant profits plummet by 27%

Operating profits at publisher Archant fell 27.2% last year after "significant" declines in advertising revenue and the regional newspaper and magazine publisher said there was no prospect of trading conditions easing.

The company announced today that operating profit fell to £22.2m from the £30.5m it made in 2007. Profit from newspaper and printing operations declined 31.8% to £16.2m and its magazines and contract publishing division recorded a fall of 17.9% to £5.8m.

Ahead of its annual general meeting next month, Richard Jewson, the Archant chairman, today issued a preliminary statement to shareholders attributing the drop in profit to declines in recruitment and property advertising revenue in the newspaper business and in property and display advertising in its Life magazines.

Jewson, who did not reveal the extent of the ad slump, said there was no prospect of difficult trading conditions easing in the near future.

"We expect the difficult trading conditions, which have deteriorated through the last few months, to continue for 2009 and beyond," Jewson said.

"It is impossible to know the timing and extent of any recovery and difficult to foresee the shape and scale of our industry in the years ahead."

Archant is a privately owned company that publishes the Eastern Daily Press, along with three other dailies, 60 weekly papers and 80 monthly magazines.

One bright spot saw online revenues increase by 51.1% to £3.8m. The company said this was driven by the further development of jobs24.co.uk and on-line display advertising.

Today's announcement follows news last week that the publisher plans to cut almost a third of its 179 editorial staff from its operation in Norfolk as it introduces an integrated editorial system across its Eastern Daily Press and Norwich Evening News titles.